In 2008, Blue Moon had been losing money for seven consecutive years and was about to make a profit, and CEO Luo Qiuping was very happy, and he was planning to let the employees celebrate. At this moment, investor Zhang Lei suddenly appeared and severely reprimanded Luo Qiuping in the conference room: If Blue Moon can't continue to lose money, I will withdraw $45 million from the investment, and you will wait for the company to close!
Luo Qiuping was a little confused by Zhang Lei's sudden anger: "Profit is not good? Why continue to lose money? But Zhang Lei is an investor who took the initiative to find the door, and the first shot is 45 million US dollars, in the face of the big money, Luo Qiuping can only endure the doubts and continue to listen."
Zhang Lei said to Luo Qiuping: "You have to take away the useless product line and focus on making laundry detergent." In the short term, there will be losses, but in the long run, it will be profitable. ”
Originally, Zhang Lei found through research that China's middle class has not satisfied only the use of low-end laundry detergent, there is a strong demand for high-end laundry detergent, washing powder to laundry detergent is a consumption upgrade, the laundry detergent market is in a blank, foreign Unilever and Procter & Gamble, only see its monopoly position in the laundry detergent market, they believe that China's consumption power is not enough to use laundry detergent.
Zhang Lei feels that this is a blue ocean that can be reclaimed, with the beginning of e-commerce taking shape, the number of domestic washing machines has grown rapidly, the replacement and circulation of ordinary people's clothes is getting faster and faster, and laundry detergent will definitely show its future in China. After Zhang Lei's investigation, he found that the domestic market was exactly the same as he thought, and laundry detergent accounted for less than 4%.
Moreover, the consumption levels of different cities in China vary greatly. If you calculate according to the number of people, the per capita GDP in China at that time exceeded 200 million US dollars. Therefore, Zhang Lei found Blue Moon and wanted to invest in Blue Moon for laundry detergent production.
Luo Qiuping could not understand Zhang Lei's idea of letting him produce laundry detergent, because at that time, the people preferred to use cheap laundry detergent and laundry soap, and there was no market for laundry hydraulic roots, and Unilever Procter & Gamble did not produce it. However, with the support of Zhang Lei's investment, Luo Qiuping still agreed to accompany Zhang Lei to gamble.
After Luo Qiuping accepted Zhang Lei's proposal, Zhang Lei said with a smile: "The golden age of laundry detergent will come, Procter & Gamble and Unilever will not compete with us at present, we hurry to break through the market." “
So, after the investment was completed, the profitable Blue Moon first became a loss-making company.
To occupy a huge blank market, you need to continue to invest, which will inevitably make the company lose money for a long time, but the laundry detergent market is huge, if Blue Moon does not win, wait until the united Lianhua and Procter & Gamble wake up, with their rich experience, marketing capabilities, scientific and technological capabilities, Blue Moon has little chance.
Only when they are not aware of it, can they quickly occupy the market, form a scale effect, and build a moat to resist their future attacks.
It turns out that Zhang Lei's vision is right, the loss is only short-term, and by 2014, the profit of Blue Moon Company has been more than ten times the original. And the market share in the three categories of laundry detergent, hand sanitizer and toilet cleaning liquid ranks first in China, higher than the sum of multinational competitors such as Procter & Gamble, Unilever and SC Johnson.
Blue Moon also rose with the outbreak of the laundry detergent market, and then went public in 2020, with an opening market value of HK$88 billion, and Zhang Lei's investment of $45 million that year brought him a return rate of more than 20 times!
Zhang Lei's success is no accident and no accident, he is deeply influenced by Buffett's "long-term investment" and mentor David Svenssen's "value investment" philosophy. Today's achievements and status are the result of a consistent long-term approach and value investing.
Zhang Lei, who has achieved fame, spent 5 years to write his 15 years of investment experience and experience into a book called "Value". This book is especially suitable for people with investment ideas and entrepreneurial spirit.
He specifically mentioned a point in his autobiography "Value": "Luo Qiuping did not have to risk losses, but he could make up his mind to give up one or two hundred million profits a year, not afraid of immediate losses, only for the long-term future, this is the pattern view, which coincides with my investment philosophy." ”
"Long-term future" is Zhang Lei's investment principle, Zhang Lei has always insisted on investing, must create long-term value, rather than to do some short-term game things.
If men want to make a lot of money, they often have to have a mindset! This thinking and cognition is: Since you have identified a path, why should you inquire about how long it will take!
This sentence coincides with a sentence in Zhang Lei's "Value", which is: "Having a long-term concept, taking faith and continuous value creation as the basis for settling down, this is very worthy of admiration for the great pattern concept."
The book "Value" is worth reading, it allows us to learn to wait for persistence, learn to put a long line, catch big fish, and find value from persistence, and then create profits from value, and then bring returns, and with this thinking pattern, we can better create wealth!
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Value Zhang Lei Thinking about Investment
